African Union Addresses Financial Crisis

Oct 28th, 2008 10:35 AM UTC
By Chris Scott

Like much of the world, Africa is concerned about the financial crisis and making moves to soften the potential blow to Africa’s economy and well-being. Yesterday, the African Union announced that they are planning a summit to discuss the continent’s response to the global financial crisis. They also “urged member states to tighten their belts to help them withstand the impact of collapsing world markets.” We’ll keep you posted on developments.

Excerpts below, full piece here

“There is no doubt it will have serious repercussions on capital flows and their sustainability, as well as on trade in Africa,” [African Union Commission chief Jean] Ping said of the global financial turmoil.

The financial crisis also may reduce donors’ development aid budgets, Ping said while attending the Sixth Forum on Sustainable Development which opened in Congo Republic’s capital Brazzaville.

African economies generally have been growing at their fastest pace for years thanks in part to booming Asian demand for their commodities exports and rising foreign investment.

But with a global economic slowdown and some developed economies tipping into recession, the International Monetary Fund trimmed its growth forecast for sub-Saharan Africa to 6 percent in 2008 and 2009 from about 6.5 percent in 2007.

-Chris Scott

TAGS: IMF, ONE, Policy News, Trade